Despite the crisis – a record few live on benefits

For many years, the number of people receiving financial assistance has decreased. And the trend continues. In June, the lowest figure ever was registered, according to preliminary figures from the National Board of Health and Welfare.

– It has never been so low ever in the monthly statistics. Despite the situation in society, the numbers point downward, says Kursat Tuncer, statistician at the National Board of Health and Welfare.

Record low levels

The first time the National Board of Health and Welfare started measuring monthly financial assistance was in 2014. But the annual statistics from last year also show record low levels.

The annual surveys began in 1990 and never before have there been so few people who received a supplement from social services at least once during the year as in 2022. Even people who receive financial assistance for a long time – at least ten months in a year – have decreased. The last time there were so few was 15 years ago. And being granted financial assistance thus seems to continue even in the first half of 2023.

– It is a little surprising considering what has happened to the Swedish economy and inflation. I had expected it to go up given that many households had difficulty with their margins, says Tapio Salonen, professor of social work at Malmö University.

It usually takes one to two years before economic crises show up in the statistics, he states. This is because people must first get rid of their savings before they can be granted money from the social services.

At the same time, unemployment has remained at a fairly even level despite inflation, which may be an explanation for why more people do not have income support, points out Åke Bergmark, professor of social work at Stockholm University.

– It is only now that unemployment is starting to point upwards, he says.

Two theories

Why a record few have financial aid right now, the researchers cannot answer for sure, but they have two hypotheses. One is about the fact that it has become increasingly difficult to get financial aid in recent decades.

– The test has become much tougher, says Åke Bergmark.

During the 21st century, it has become increasingly common for the social services to say no to financial assistance even though the person has no income at all, his research shows. This, although nothing in the law has actually changed since the 1990s.

In addition to more rejections, the stricter requirements also lead to people avoiding applying for income support, even though they would actually be entitled to it, Tapio Salonen believes.

– Many households are having a hard time, but the thresholds for income support are high. They perceive the livelihood support as very controlling and omitting, he says.

The rejections are most common for people who only need financial assistance occasionally. The fact that fewer also have financial assistance for a long time is probably due to tougher rules for residence permits, and that many who fled to Sweden during the refugee wave in 2015 have now found work, the researchers believe.

In 2022, 57 percent of those who received long-term assistance were born abroad, but the longer immigrants stay in Sweden, the fewer of them receive financial assistance.

– The tendency is that over time people get into work and fewer go on financial assistance, says Åke Bergmark.

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